Volume of Outsourcing
Technically outsourcing is the process through which a company hands over part of its work to another company. In this process the new company is totally in charge of the designing and implementing of the business process with guidelines of requirements from the outsourcing company. In other words, the outsourcing company orders a product that is tailor made for it by the service providing company or the service provider. This product fits into the customer’s overall business plan.
This process is beneficial to both the parties involved as it releases the outsourcing company from the headaches of rolling out the business process and the establishment costs involved. The service provider on the other hand specializes in that service and already has the infrastructure and the expertise, and is therefore able to utilize it to the maximum. There are two principal types of outsourcing; traditional and greenfield. In “traditional” outsourcing, the company ceases to perform the job and out sources it to the service provider. In such a case the company lays off or re-employs the staff related to the shifted process. New jobs are now created at the end of the service provider who employs new people to do the job. In “greenfield” outsourcing, the company changes its business processes without leading to any hiring of personnel by the service provider.
What is BPO?
What is a BSP?
A BSP or a Business Service Provider, is an outsourcing service provider that offers scalable BPO services through the Internet
The Shift from other Nations
Cheap labor is available in many parts of the world but it does not come with the maturity that India has gained over the years having entered the field early. Many companies in India have scored a Level 5 rating from Carnegie Mellon’s Software Engineering Institute, the highest international standard a software company can achieve. In fact of the 70 or so companies in the world that have earned this designation, half are from India. That does not leave much choice to outsourcers. The Indian market is also a tried and tested market so newer jobs are coming to India, but more than that, it is the growth in the value chart that has endeared customers to India.